BILL ANALYSIS                                                                                                                                                                                                    



                                                                    SB 569
                                                                    Page  1

          Date of Hearing:   August 18, 1999

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS 
                              Carole Migden, Chairwoman

                     SB 569 (Alarcon) - As Amended: May 28, 1999

          Policy Committee:                              Human  
          ServicesVote:6 - 2

          Urgency:     No                   State Mandated Local  
          Program:NoReimbursable:           -

           SUMMARY  

          This bill appropriates $115,000 from the General Fund to the  
          Department of Rehabilitation (DOR) for a pilot project and:

          1)Requires DOR to allocate funding to a private nonprofit  
            organization in Los Angeles County to establish a three-year  
            employment program for adults with developmental, physical,  
            and emotional disabilities. 

          2)Specifies that the nonprofit organization must have  
            demonstrated the ability to provide assessment and vocational  
            services to disabled clients for over a period of at least 50  
            years. 

          3)Requires the organization operating the pilot program to  
            conduct an evaluation by December 31, 2002.

           FISCAL EFFECT  

          1)The pilot project would result in annual General Fund costs,  
            potentially in excess of $115,000, depending on the number of  
            individuals served and the extent of employment services they  
            are provided.  The bill appropriates $115,000 from the General  
            Fund for the project.

          2)One-time evaluation costs, probably in the range of $50,000,  
            also depending on the number of individuals served.

           COMMENTS  

           1)Purpose of the Bill  .  This bill is sponsored by the Jewish  








                                                                    SB 569
                                                                    Page  2

            Community Relations Committee and the Jewish Federation of  
            Greater Los Angeles.   The sponsors' intent is to obtain  
            funding for a program operated by a specific nonprofit  
            organization in Los Angeles County.  Supporters of the program  
            maintain that the program will serve individuals who are  
            eligible to receive services from DOR but are unable to  
            utilize the department's services because DOR allocates funds  
            for employment services to those in greatest need for the  
            services based on level of disability.  This bill is intended  
            to enable individuals with less serious disabilities to be  
            served. 

            The bill's sponsors believe savings from the pilot program  
            will offset its cost by enabling participants to become  
            self-sufficient and less dependent upon public assistance.    
            According to the sponsor, the dollars provided to assist these  
            adults to make the transition to independent living will be  
            repaid many times over once these adults enter the workforce.

           2)Evaluation  .  The bill requires the organization receiving  
            funding to evaluate its own success or failure.  Presumably,  
            the provision is intended to avoid state costs for the  
            evaluation.  However, it is unlikely that a neutral evaluation  
            can result unless it is conducted by the state agency  
            responsible for administering the pilot project.

           Analysis Prepared by  :    William Wehrle / APPR. / (916) 319-2081